**Proprietary Transaction Code Modifications (FY 2024)**

**Misc. Receipts & Unexpended Appropriations permanently reduce by legislative action**

**1) A144** To record unexpended appropriations (derived by non-expenditure transfer) permanently reduced by legislative action in General Fund Treasury Appropriation Fund Symbols (TAFS.)

**Comment:** Refer to Office of Management and Budget Circular No. A-11 for the definition of reductions. Reductions include rescissions, across-the-board reductions, and sequestrations. This transaction applies to a permanent reduction. Fund balance must be returned to a miscellaneous receipt account designated by OMB on an SF 1151, Non-expenditure Transfer, coded as a capital transfer. Credit USSGL account 299100 if withdrawal of funds does not occur simultaneously. Note: To return fund balance to the miscellaneous receipt account, also post USSGL TC A147.

**Budgetary Entry**

Debit	445000	Unapportioned – Unexpired Authority

	   Credit	   439300	Permanent Reduction – Prior-Year Balances

**Proprietary Entry**

Debit	576600	Non-Expenditure Financing Sources – Transfers Out- Capital Transfers

Debit	310300	Unexpended Appropriations – Transfer-Out

	   Credit	   101000		Fund Balance With Treasury

**Proprietary Transaction Code Additions (FY 2024)**

**Misc. Receipts & Unexpended Appropriations permanently reduce by legislative action**

**1) A203**To record in a miscellaneous receipt Treasury Appropriations Fund Symbol (TAFS) an amount that was permanently reduced by legislative action in special or trust Treasury Appropriation Fund Symbols (TAFS).

**Comment:** Also post USSGL TC A134 in the related special or trust TAFS. To record the year end sweep of a General Fund Receipt Account, see USSGL TC C142 or C147

**Budgetary Entry**

None

**Proprietary Entry**

Debit	101000	Fund Balance With Treasury

	   Credit	   575500		Non-Expenditure Financing Sources – Transfers In- Other

**Leases determined to be “Capital Leases” per OMB Budgetary Treatment**

**2) B117**To record the amount of interest a Lessee accrues during an accrual period, per the proprietary amortization schedule.  The lessee should calculate the amortization of the discount on the lease liability and recognize that amount as interest expense for the period. (SFFAS 54, Par. 43)  This transaction is for leases determined to be “Capital Leases” for budgetary accounting purposes, only.

**Comment:**This transaction is only for leases determined to be “Capital Leases” (per OMB Circular No. A-136, Appendix B) for budgetary accounting purposes.

**Reference:** If funded by a direct appropriation, also post USSGL TC-B134.

**Budgetary Entry**

480100 Undelivered Orders – Obligations, Unpaid           

490100 Delivered Orders – Obligations, Unpaid  

**Proprietary Entry**

633000 Other Interest Expense         

214000 Accrued Interest Payable – Not Otherwise Classified

**Leases Interest Accruals**

**3)****B145** To record the amount of interest a Lessee accrues during an accrual period for a right-to-use lease, per the contractually required payment schedule. This lease transaction is for budgetary accounting purposes, only.

**Comment:**This lease transaction is for budgetary accounting purposes, only (per OMB Circular No. A-136, Appendix B.)

**Budgetary Entry**

480100 Undelivered Orders – Obligations, Unpaid           

490100 Delivered Orders – Obligations, Unpaid  

**Proprietary Entry**

None

**4) B419** To record the amount of interest a Lessee accrues during an accrual period for a right-to-use lease, per the proprietary amortization schedule.  This lease transaction is for proprietary accounting purposes, only.

**Comment:**This lease transaction is for proprietary accounting purposes, only.  Per SFFAS 54, Par. 43, the lessee should calculate the amortization of the discount on the lease liability and recognize that amount as interest expense for the period.

**Budgetary Entry**

None

**Proprietary Entry**

633000	Other Interest Expense

****214000	Accrued Interest Payable – Not Otherwise Classified

**Leases Terminations and Modifications**

**5) C731**To record a lessee’s full or partial lease termination by reducing the carrying values of the right-to-use lease asset/lease liability and recognizing a respective gain/loss for any differences.

**Comment:**If the lease termination is a result of the lessee purchasing the underlying asset from the lessor, the lease asset should instead be reclassified to the appropriate PP&E SGL.

**Reference:**Please refer to definition/scope of lease terminations and the appropriate accounting guidance within SFFAS 54, Pars. 80-83.

**Budgetary Entry**

None

**Proprietary Entry**

293000 Lessee Lease Liability

293010 Unfunded Lease Liability 

195900 Accumulated Amortization on Lessee Lease Assets

721000 Losses on Disposition of Assets - Other

195000 	Lessee Right-To-Use Lease Asset

711000 Gains on Disposition of Assets - Other

**6) C732**To record a lessee’s lease modification, when an amendment resulting in the modification is NOT reported as a separate lease, by remeasuring the lease liability and adjusting the lease asset.  If the change reduces the carrying value of the lease asset to zero, any remaining amount should be reported as a gain.

**Comment:**If the amendment resulting in the modification is required to be reported as a separate lease, do not record this entry; See SFFAS 54, Par. 84.

**Reference:**Please refer to definition/scope of lease modifications and the appropriate accounting guidance within SFFAS 54, Par. 80 & Pars. 84-86.  

**Budgetary Entry**

None

**Proprietary Entry**

293000 Lessee Lease Liability

293010 Unfunded Lease Liability 

195900 Accumulated Amortization on Lessee Lease Assets

195000 	Lessee Right-To-Use Lease Asset

719000 Other Gains

**7) C733**To record a lessor’s full or partial lease termination by reducing the carrying values of the lease receivable and unearned revenue, and recognizing a respective gain/loss for any differences.

**Comment:**If the lease termination is a result of the lessee purchasing the underlying asset from the lessor, the carrying value of the underlying asset should also be derecognized and included in the calculation of any gain/loss.

**Reference:**Please refer to definition/scope of lease terminations and the appropriate accounting guidance within SFFAS 54, Pars. 80-83.

**Budgetary Entry**

None

**Proprietary Entry**

233000 Unearned Lessor Revenue

193900 Allowance for Loss on Lease Receivable

721000 Losses on Disposition of Assets - Other

593900 	Contra Revenue for Lessor Lease Revenue

193000 Lessor Lease Receivable

711000 Gains on Disposition of Assets - Other

Page 2 of 2                                        IRC Handout 11/29/2023